Avalanche (AVAX) Surges to $13 After 8% Increase: Will It Overcome Resistance or Take a Breather?

In the past 24 hours, Avalanche (AVAX) has experienced a notable rise of 8.84%. Starting the day at $12.33, its price peaked at $13.78 due to increased buying activity. Currently, AVAX is trading around $13.42 with a market cap of $5.75 billion. The daily trading activity has surged by over 172.55%, reaching $596.74 million, despite a liquidation of $1.48 million worth of AVAX in the market.

Key Takeaways

Avalanche (AVAX) witnessed a price increase of 8.84% within 24 hours, reaching a high of $13.78.
The asset currently trades around $13.42, with a market cap of $5.75 billion.
Daily trading volume has surged over 172.55%, reaching $596.74 million.
Positive indicators suggest potential for further upward movement, but resistance levels and possible corrections exist.

Analyzing Avalanche's Price Movement

Avalanche's price chart demonstrates its recent upward trend, indicating potential for further gains towards the resistance level at approximately $13.62. Should buying pressure continue to rise, a "golden cross" could form, potentially pushing the price up to test the $13.82 level.

Conversely, if there is a price reversal, bears could push Avalanche down to the support level of $13.22. If selling momentum increases, a "death cross" might emerge, possibly driving the price down to $13.02 or lower.

AVAX chart (Source: TradingView)

The Moving Average Convergence Divergence (MACD) line is currently above the signal line, indicating a positive price outlook. As long as it remains in this position, the upward trend may persist. Additionally, the Chaikin Money Flow (CMF) indicator for AVAX shows 0.29, which suggests robust buying activity in the market, supporting the bullish trend.

Moreover, the Bull Bear Power (BBP) reading of 0.93 indicates that buyers are dominating the market, pushing the price higher and outweighing selling pressure. The momentum remains upward as long as it stays positive. The daily Relative Strength Index (RSI) for Avalanche is at 65.85, reflecting strong bullish sentiment, though it is nearing the overbought territory. If the RSI rises above 70, it might trigger a potential price pullback.

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